Saturday, June 29, 2013

Opening a small business requires all
sorts of preparations such as raising capital, writing a business
plan, finding a suitable premises, hiring staff and myriad other
tasks. No less important is an awareness of the top business laws
connected to the opening of a new business. Approach the legal aspect
of opening a business systematically. What are the laws pertaining to
launching a business? Are you required to get a business license? If
you are you planning to hire employees, what laws apply? What kind of
taxes will you have to pay? Look into each area and do not hesitate
to consult with experts when you are unsure.

Company Law. Your new company constitutes a
separate legal entity. In the event that you are a director of a
company, the Companies Act 2006 states your legal responsibilities,
including your obligation to act in good faith in the best interest
of the company.

Tax Laws. Familiarize yourself with the
various tax laws including regulations pertaining to the filing of
tax returns. If you are selling merchandise, look into the issue of
sales tax. There are additional taxes such as withholding taxes,
corporate taxes, pass through taxes and both state and local taxes.
Consulting with a CPA will help you to understand the complex issue
of taxes and your own obligations.

Employment Laws. If you are planning on hiring
employees, there is a wide range of laws with which you must become
acquainted. The Health and Safety at Work Act 1974 (enforced by the
Health and Safety Executive) defines your duty as an employer to
ensure the safety and wellbeing of your employees. It is illegal to
discriminate against people because of their gender, race, belief,
sexuality, disability or age when hiring, employing or firing them.
Relevant laws in this area are: Sex Discrimination Act 1975 and
Equal Pay Act 1970; Race Relations Act 1976; Employment Equality
(Religion or Belief) Regulations 2003; Employment Equality (Sexual
Orientation) Regulations 2003; Disability Discrimination Act 1995;
Employment Equality (Age) Regulations 2006. You may be obligated to
pay your employees Statutory Sick Pay (SSP) if they become ill for a
period of between four and 28 days. If the duration of their illness
exceeds this period, they may become eligible for an Incapacity
Benefit.

Environmental Laws. Businesses are obligated to
protect the environment according to the Environmental Protection
Act 1990. The law stipulates the sensitive management of waste
products and enacts controls regarding emissions into the
environment (including noise). This act applies only to direct
pollution. The current law does not obligate businesses to behave in
an environmentally friendly way.

Zoning Laws. Zoning laws are usually local
ordinances that regulate the type of business that is allowed to be
conducted in a specific area, how the land surrounding the business
is used, parking, advertising and other details. When in doubt, turn
to the local Chamber of Commerce for assistance.

These are only a few of the many
federal and local laws that may apply to your new business. As
ignorance does not exempt you from adhering to the various laws, seek
the advice of tax and legal professionals who can inform you of the
particular laws affecting your specific business.